The woes and pangs of WTO

Trade Issues in WTO

The problems confronting primary exports are manifold. Many extraneous and intraneous factors deplete trade liberalization. A few factors that try to disengage trade are as follows.

  1. Steady detoriation for the need of demand based on price elasticity for primary products in the open and international market can be a hinderence to the severe trade measures.
  2. Severe fluctuations in terms of trade for primary and secondary products to create price pressure for internal tagging kills the demand for natural and synthetic goods.
  3. The growth of substitutes for unnatural product prices in the market can create negative demand for the apt goods.
  4. Changes in the technology at a rapid pace have reduced the amount of material used in manufacturing.
  5. Pattern of consumption in developing and developed countries make a low propensity to consume wanted products.
  6. Tariff structure introduced by industrial nations for some primary products can be an impediment.
  7. Non-regulated supply of products outside the trade barriers can create economic leakage.
  8. Floating and fluctuating tariff structures hinder adanced progression to trade.
  9. Trade diversion instead of trade creation can increase unwanted economic leakage.
  10. Uncontrolled state economies that invite a different cess or duty can prohibit trade liberalization.

New trade policies that involve the reform period to strike down the quantitative restrictions on imports and reduce import tariffs so as to open up the forces of globalization need a few changes to a few plans. Some of the points are listed below.

  1. Freer Imports and Exports with a unrationalized structure, quantitative and qualitative restrictions are an absolute measure towards a trade imbalance.
  2. Rationalization of the tariff structures would demand a parity of prices of goods that can be produced domestically and internationally to reduce the maximum rate of outbound and inbound duty.
  3. In certain countries, where state-owned public sector enterprises are a part of development, channelizing good and services can co-create trade liberalization.
  4. Central bankers determine the rate of exchange to check excess volatility, prevent speculative activities, and maintain an exchange reserve system to create managed floating. Trade barriers and adjustments based on duties can precipitate as a cross-trade impediments to the exchange rates which can be adjusted.
  5. Trading houses, including non-serviced goods and items under Special Economic Zones can cater to the open market directly, to create a balance of payment under trade agreements.
  6. Agricultural Export Zones or AEZs, can reorganize specific products under specific geo-pockets to identify potential products based on clustering. Adopting end-to-end integration can have exporters avail various promotions under the zones.
  7. Setting up free trade and warehousing zones or FTWZs can create trade related infrastructure to facilitate the import and export of goods and services to carry trade transactions that automatically introduce taxes to their respective governments.
  8. Exporters can get an exemption to liberalize imports and exports based on their transaction volume and costs. The import of second hand goods and services, produced in the host countries can open trade deals meant for dual treaty, under two host countries.
  9. Tax holiday introduced, and quantified and qualified under facilities and tax benefits to export goods and merchandize, can reduce a reduction of tariffs.
  10. ‘Make in India’, ‘Exported from EU’, ‘Sold in Australia’- these trade creations can create new markets, categorically for unfinished and semi-finished products. To explain, a semi-finished T-shirt made in Bangladesh can carry forward and backward integration for goods sold in the USA or Brazil, under new tariff trades.

 

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